Thanks for this. The latest research report 10^14 already appears to be a significant update on that paper.
IBM now report roughly eight times as many simulated neurons and synapses, while the slow-down has gone from ~400x real-time to ~1500x real time. That works out at a factor > 2 in hardware improvement within a matter of months. They are using a custom hardware architecture and presumably there are still a lot of optimisations to be made. It can't be very long before this can run in real time.
As said in other comments, nobody knows how to program this yet...
Recent article in The New Yorker:
http://www.newyorker.com/online/blogs/newsdesk/2012/11/ibm-brain-simulation-compass.html
Here is the research report from IBM, with the simple title "10^14":
http://www.modha.org/blog/SC12/RJ10502.pdf
It's nothing like a real brain simulation, of course, but illustrates that hardware to do this is getting very close.
There is likely to be quite a long overhang between the hardware and the software...